Jeweller Luk Fook has revealed plans to add a net 500 retail stores during the coming year, as it reports a 32.5 per cent increase in sales during the latest financial year.
In a stock-exchange filing, chairman and CEO Wai Sheung Wong said the company’s store-expansion program would mainly focus on opening licensed shops in fourth- and fifth-tier cities. Around 50 stores will open under Luk Fook’s new diffusion brands, mainly licensed shops, including Lukfook Joaillerie targeting the high-end market, and Heirloom Fortune, focused on traditional craftsmanship.
Last year, the jeweller added a net 443 stores.
Besides store expansion, the company will also further develop its e-commerce business by strengthening its cooperation with Mainland channels and developing its own platform. Last year, Luk Fook’s online sales surged by 60.2 per cent on the mainland to US$173 million, accounting for 53.7 per cent of overall mainland revenue. In the year ahead, the company is targeting a further 20 per cent growth online.
“In light of the enormous spending potential of young consumers on online sales platforms, the group will continue its endeavours to promote the sales of affordable luxury jewellery products to expand its footprint in the young consumer market,” said Wong.
In the year to March 31, Luk Fook achieved overall sales of $1.49 billion. Profit attributable to shareholders surged 36.9 per cent to $178.4 million.
The improved performance was fuelled by a rebound in sales in both Hong Kong and Mainland China, albeit off a low base comparison. Same-store sales in Hong Kong and Macau were up by 42 per cent and on the mainland by 40.1 per cent.
Wong said further expansion of its retail network and the progressive relaxation of the lockdown measures on the mainland – together with the government’s commitment to implementing economic push measures and consumption encouragement policies – Luk Fook is targeting double-digit growth in revenue during the coming year and looking forward to reaching “a record-high profit in three years”.